What would a federal growth of deposit insurance coverage seem like?

New York
CNN
 — 

Right now, $250,000 seems to be the number on everyone’s minds.

That’s the Federal Deposit Insurance Corporation’s standard limit, meaning any bank deposits up to that amount are protected by the independent government agency.

Before the recent collapse of Silicon Valley Bank and Signature Bank, most Americans were not worried about (or even thinking about) insurance limits on banks, since almost all US banks are backed by the FDIC.

But now there’s growing support for raising that insurance cap.

Advocates, including prominent lawmakers such as Massachusetts Senator Elizabeth Warren, say such measures will help stabilize a sector on the brink and prevent future bank runs, and that the government has already made exceptions for depositors this month.

Others argue a sweeping deposit guarantee would encourage banks to…

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